voestalpine in North America
voestalpine consistently follows its international growth strategy, continually searching for new opportunities to establish sustainable business models. In addition to Asia, North America is also a focus for growth within the Group Strategy 2020. voestalpine is currently represented in North America by all its four divisions, with 68 sites and 36 companies in Canada (10 sites), Mexico (9 sites) and the USA (49 sites), and with a workforce of 2,617 employees.
Tripling of revenue in North America by 2020
voestalpine's strategic goal for the business year 2020/21 is to achieve Group revenue of around EUR 20 billion. To date 9% of revenue, representing around EUR 1 billion (USD 1.3 billion), is generated in North America. The aim is to triple revenue in North America by 2020, an increase from 9% to around 15%.
This ambitious goal will be achieved by focusing on the growth sectors of mobility and energy. Currently 62% of Group revenue is generated in the automotive, energy and railway sectors.
The plan includes investing in new sites and acquisitions as well as technological improvements to existing plants. That will allow the value chain to be extended right through to the customer. As part of its global strategy, the voestalpine Group will continue to strengthen its presence in the United States over the coming years.
- voestalpine is currently investing around EUR 600 million (USD 760 million) at two locations in the United States. A new automotive plant for ultra high-strength body-in-white parts, opened in April 2014 in Cartersville (GA), will be the future strategic center for voestalpine automotive activities in North America.
- voestalpine also recently conducted a groundbreaking ceremony for its new direct reduction plant in Corpus Christi, (TX). This EUR 550 million (USD 698 million) facility is the largest foreign investment in the history of the voestalpine Group to date. Beginning in 2016, this plant with 150 employees will produce two million tons of high-quality sponge iron (hot briquetted iron) annually – a low-cost and environmentally-friendly pre-material for manufacturing crude steel. Using natural gas instead of coke in the reduction process plays a key role in improving the CO₂ balance and reducing greenhouse gas emissions.
- The boom in the expansion of railway infrastructure is supported by investments of the U.S. Government in transportation infrastructure. The growing demand for rail tracks will be the focus of future voestalpine investments.